Arsenal finances show massive £120.6m surplus

Arsenal have announced an impressive set of financial figures for the period ending November 30 2013, with the accounts revealing the club boasts a huge £120.6 million cash reserve.

With operating profits to £22.2m for the year, up from the £4.4m surplus in 2012, the figures suggest Arsenal manager Arsene Wenger had plenty of financial firepower in the last transfer window, even though he opted not to make any fresh signings.

Arsenal were heavily linked with a move for Schalke's Julian Draxler in January, yet the reported £37m price tag for the German was believed to be a stumbling block for Wenger, who opted to stick with the squad that served him well in the first half of this season.

That decision will be put to the test in the coming days as Arsenal face a crucial FA Cup clash with Liverpool on Sunday and a Champions League meeting with Bayern Munich next Wednesday.

"When I was appointed chairman last summer, there was good reason to believe that the hard work which has been put in, by many people across the club, over recent years had created the momentum for a successful season in every aspect of our activities," Arsenal chairman Sir Chips Keswick said.

"Thus far that optimism has been well-founded. We believe we are in a strong position to take the club forward both in the short-term and beyond and to deliver future on-field success."